Vietnam offers a young, fast-growing manufacturing and tech workforce with codified labour rules. All-in employer cost runs around 1.22x the gross salary. Here is what to know before your first Vietnamese hire.
Employment runs under the 2019 Labour Code, with compulsory social, health, and unemployment insurance and written contracts. A Tet (Lunar New Year) bonus is customary, and probation is short and capped.
Regional minimum wages apply, roughly VND 3.45 to 4.96 million per month in 2024*, so the figure depends on the region.
Monthly payroll. A 13th-month or Tet bonus is a strong custom, though not strictly statutory.
There are 11 paid public-holiday days a year, including the multi-day Tet holiday.
Written contracts are required. Probation is capped, up to 60 days for most roles (180 for senior managers).
Employer compulsory-insurance contributions add about 21.5% on top of gross salary across social, health, and unemployment insurance.
Social and health insurance apply up to salary caps tied to the base and minimum wages, so contributions plateau for higher earners.
Employees pay personal income tax on a progressive scale plus their insurance share, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
At least 12 paid days a year, rising by one day every five years of service.
Six months of maternity leave, funded through social insurance.
Paid through social insurance on a scale tied to contributions and tenure.
Paid leave is provided for marriage, bereavement, and certain family events.
Notice runs from 30 to 45 days for indefinite contracts, and termination must rest on a lawful ground under the Labour Code.
Severance of half a month's pay per year applies for pre-2009 service; unemployment insurance covers later service.
Capped at 60 days for most roles (180 for senior managers), with limited grounds to end it.
A contractor working like an employee can be reclassified, with back insurance and entitlements.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Vietnamese labour contract, payroll, and compulsory insurances, handled. One invoice, flat $499 per month.